Home/Federal/Federal Register/2023-26963

Notice2023-26963

Desert Southwest Region-Rate Order No. WAPA-209

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

December 8, 2023

Effective

January 1, 2024

Issuing agencies

Energy DepartmentWestern Area Power Administration

Abstract

New formula rates for firm and nonfirm point-to-point (P2P) and network integration (Network) transmission service have been confirmed, approved, and placed into effect on an interim basis for the Desert Southwest Region (DSW) of the Western Area Power Administration (WAPA). The revisions to the existing formula rates for Parker-Davis Project (PDP) firm electric service (FES) and firm transmission service of Salt Lake City Area/Integrated Projects (SLCA/IP) power have also been confirmed, approved, and placed into effect on an interim basis. The new formula rates and revisions to existing formula rates combine the facilities use charge for Electrical District No. 5 to Palo Verde Hub Project (ED5-PVH) and the transmission service rates of Central Arizona Project (CAP), the southern portion of Pacific Northwest- Pacific Southwest Intertie Project (Intertie), and PDP.

Full Text

<html>
<head>
<title>Federal Register, Volume 88 Issue 235 (Friday, December 8, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Notices]
[Pages 85611-85618]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26963]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Western Area Power Administration

Desert Southwest Region--Rate Order No. WAPA-209

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of rate order concerning formula rates for transmission
and firm electric service.

-----------------------------------------------------------------------

SUMMARY: New formula rates for firm and nonfirm point-to-point (P2P)
and network integration (Network) transmission service have been
confirmed, approved, and placed into effect on an interim basis for the
Desert Southwest Region (DSW) of the Western Area Power Administration
(WAPA). The revisions to the existing formula rates for Parker-Davis
Project (PDP) firm electric service (FES) and firm transmission service
of Salt Lake City Area/Integrated Projects (SLCA/IP) power have also
been confirmed, approved, and placed into effect on an interim basis.
The new formula rates and revisions to existing formula rates combine
the facilities use charge for Electrical District No. 5 to Palo Verde
Hub Project (ED5-PVH) and the transmission service rates of Central
Arizona Project (CAP), the southern portion of Pacific Northwest-
Pacific Southwest Intertie Project (Intertie), and PDP.

DATES: The provisional formula rates under Rate Schedules DSW-FT1, DSW-
NFT1, DSW-NTS1, PD-F8, and PD-FCT8 are effective on the first day of
the first full billing period beginning on or after January 1, 2024,
and will remain in effect through September 30, 2028, pending
confirmation and approval by the Federal Energy Regulatory Commission
(FERC) on a final basis or until superseded.

FOR FURTHER INFORMATION CONTACT: Jack D. Murray, Regional Manager,
Desert Southwest Region, Western Area Power Administration, P.O. Box
6457, Phoenix, AZ 85005-6457, or email: <a href="/cdn-cgi/l/email-protection#294d5a5e595e5b445b42695e485948074e465f"><span class="__cf_email__" data-cfemail="573324202720253a253c172036273679303821">[email&#160;protected]</span></a>, or Tina
Ramsey, Rates Manager, Desert Southwest Region, Western Area Power
Administration, (602) 605-2565 or email: <a href="/cdn-cgi/l/email-protection#6c081f1b1c1b1e011e072c1b0d1c0d420b031a"><span class="__cf_email__" data-cfemail="d8bcabafa8afaab5aab398afb9a8b9f6bfb7ae">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: The following Rate Schedules have been
approved and confirmed by FERC on a

[[Page 85612]]

final basis, or approved by WAPA's Administrator on an interim basis
and pending final approval and confirmation by FERC, through the dates
indicated below:
---------------------------------------------------------------------------

\1\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF20-10-000.
\2\ 88 FR 59904 (Aug. 30, 2023) (extending rate schedules and
placing them into effect on an interim basis); FERC filing in Docket
No. EF23-9-000.
\3\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF21-6-000.

----------------------------------------------------------------------------------------------------------------
Dates
Rate schedules Rate order Nos. -------------------------------------
Approval Expiration
----------------------------------------------------------------------------------------------------------------
CAP[dash]FT3 \1\........................... WAPA[dash]193................ 12/10/2020 12/31/2025
INT[dash]FT5 \2\........................... WAPA[dash]210................ 10/1/2023 9/30/2024
PD[dash]FT7 \2\............................ WAPA[dash]210................ 10/1/2023 9/30/2024
CAP[dash]NFT3 \1\.......................... WAPA[dash]193................ 12/10/2020 12/31/2025
INT[dash]NFT4 \2\.......................... WAPA[dash]210................ 10/1/2023 9/30/2024
PD[dash]NFT7 \2\........................... WAPA[dash]210................ 10/1/2023 9/30/2024
CAP[dash]NITS3 \1\......................... WAPA[dash]193................ 12/10/2020 12/31/2025
INT[dash]NTS4 \3\.......................... WAPA[dash]200................ 10/25/2022 9/30/2026
PD[dash]NTS4 \3\........................... WAPA[dash]200................ 10/25/2022 9/30/2026
PD[dash]F7 \2\............................. WAPA[dash]210................ 10/1/2023 9/30/2024
PD[dash]FCT7 \2\........................... WAPA[dash]210................ 10/1/2023 9/30/2024
----------------------------------------------------------------------------------------------------------------

Rate Schedules CAP-FT3, INT-FT5, and PD-FT7 apply to long-term and
short-term firm P2P transmission service. Rate Schedules CAP-NFT3, INT-
NFT4, and PD-NFT7 apply to nonfirm P2P transmission service. Rate
Schedules CAP-NITS3, INT-NTS4, and PD-NTS4 apply to Network
transmission service. Rate Schedules PD-F7 and PD-FCT7 apply to PDP FES
and transmission service of SLCA/IP power, respectively. Existing rate
schedules do not apply to ED5-PVH; rather, since the project began
commercial operation in 2015, DSW has charged for the use of ED5-PVH
facilities through a contractual arrangement with customers.\4\ The
facilities use charge for ED5-PVH is designed to recover all costs
incurred by WAPA in connection with the project including debt service,
operation, maintenance, replacements, and extraordinary repairs.
---------------------------------------------------------------------------

\4\ The ED5-PVH is a 109-mile transmission project completed
under WAPA's Transmission Infrastructure Program (TIP). TIP was
established to implement section 301 of the Hoover Power Plant Act
of 1984 (Pub. L. 98-381), which was enacted pursuant to section 402
of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-
5), and manage WAPA's $3.25 billion borrowing authority to support
projects facilitating the delivery of renewable resources in the
western United States.
---------------------------------------------------------------------------

WAPA published a Federal Register notice (Proposed FRN) on June 30,
2023 (88 FR 42355), proposing new formula rates for firm and nonfirm
P2P and Network transmission service and revisions to the existing
formula rates for PDP FES and firm transmission service of SLCA/IP
power. The proposed new formula rates and revisions to existing formula
rates would combine the facilities use charge for the ED5-PVH and the
transmission service rates of CAP, the southern portion of Intertie,
and PDP. The Proposed FRN also initiated a 90-day public consultation
and comment period and set forth the dates and location of the public
information and public comment forums.

Legal Authority

By Delegation Order No. S1-DEL-RATES-2016, effective November 19,
2016, the Secretary of Energy delegated: (1) the authority to develop
power and transmission rates to the WAPA Administrator; (2) the
authority to confirm, approve, and place such rates into effect on an
interim basis to the Deputy Secretary of Energy; and (3) the authority
to confirm, approve, and place into effect on a final basis, or to
remand or disapprove such rates, to FERC. By Delegation Order No. S1-
DEL-S3-2023, effective April 10, 2023, the Secretary of Energy also
delegated the authority to confirm, approve, and place such rates into
effect on an interim basis to the Under Secretary for Infrastructure.
By Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023,
the Under Secretary for Infrastructure further redelegated the
authority to confirm, approve, and place such rates into effect on an
interim basis to WAPA's Administrator. This rate action is issued under
Redelegation Order No. S3-DEL-WAPA1-2023 and Department of Energy
procedures for public participation in rate adjustments set forth at 10
CFR part 903.\5\
---------------------------------------------------------------------------

\5\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------

Following a review of DSW's proposal, Rate Order No. WAPA-209,
which provides the formula rates for transmission and firm electric
service, is hereby confirmed, approved, and placed into effect on an
interim basis. WAPA will submit Rate Order No. WAPA-209 to FERC for
confirmation and approval on a final basis.

Department of Energy Administrator, Western Area Power Administration

In the Matter of: Western Area Power Administration, Desert Southwest
Region, Transmission and Firm Electric Service, Formula Rates, Rate
Order No. WAPA-209

Order Confirming, Approving, and Placing the Formula Rates for the
Desert Southwest Region Into Effect on an Interim Basis

The formula rates in Rate Order No. WAPA-209 are established
following section 302 of the Department of Energy (DOE) Organization
Act (42 U.S.C. 7152).\1\
---------------------------------------------------------------------------

\1\ This Act transferred to, and vested in, the Secretary of
Energy the power marketing functions of the Secretary of the
Department of the Interior and the Bureau of Reclamation
(Reclamation) under the Reclamation Act of 1902 (ch. 1093, 32 Stat.
388), as amended and supplemented by subsequent laws, particularly
section 9(c) of the Reclamation Project Act of 1939 (43 U.S.C.
485h(c)), and other acts that specifically apply to the projects
involved.
---------------------------------------------------------------------------

By Delegation Order No. S1-DEL-RATES-2016, effective November 19,
2016, the Secretary of Energy delegated: (1) the authority to develop
power and transmission rates to the Western Area Power Administration
(WAPA) Administrator; (2) the authority to confirm, approve, and place
such rates into effect on an interim basis to the Deputy Secretary of
Energy; and (3) the authority to confirm, approve, and place into
effect on a final basis, or to remand or disapprove such rates, to the
Federal Energy Regulatory Commission (FERC). By Delegation Order No.
S1-DEL-S3-

[[Page 85613]]

2023, effective April 10, 2023, the Secretary of Energy also delegated
the authority to confirm, approve, and place such rates into effect on
an interim basis to the Under Secretary for Infrastructure. By
Redelegation Order No. S3-DEL-WAPA1-2023, effective April 10, 2023, the
Under Secretary for Infrastructure further redelegated the authority to
confirm, approve, and place such rates into effect on an interim basis
to WAPA's Administrator. This rate action is issued under Redelegation
Order No. S3-DEL-WAPA1-2023 and DOE procedures for public participation
in rate adjustments set forth at 10 CFR part 903.\2\
---------------------------------------------------------------------------

\2\ 50 FR 37835 (Sept. 18, 1985) and 84 FR 5347 (Feb. 21, 2019).
---------------------------------------------------------------------------

Acronyms, Terms, and Definitions

As used in this Rate Order, the following acronyms, terms, and
definitions apply:
ATRR: Annual Transmission Revenue Requirement.
Capacity: The electric capability of a generator, transformer,
transmission circuit, or other equipment. It is expressed in kilowatts
(kW) or megawatts (MW).
Capacity Rate: The rate which sets forth the charges for capacity.
It is expressed in dollars per kilowatt-month and applied to each
kilowatt of the customer's monthly contractual energy reservation.
DOE: Department of Energy.
Energy: Measured in terms of the work it can do over time. Electric
energy is expressed in kilowatt-hours or megawatt-hours.
Energy Rate: The rate which sets forth the charges for energy. It
is expressed in mills per kilowatt-hour and applied to each kilowatt-
hour delivered to each customer.
FES: Firm electric service.
FRN: Federal Register notice--a document published in the Federal
Register for WAPA to provide information of public interest.
kW: Kilowatt--the electrical unit of capacity that equals 1,000
watts.
kWh: Kilowatt-hour--the electrical unit of energy that equals 1,000
watts in 1 hour.
kW-month: Kilowatt-month--the electrical unit of the monthly amount
of capacity.
kW-year: Kilowatt-year--the electrical unit of the yearly amount of
capacity.
mills/kWh: Mills per kilowatt-hour--the unit of charge for energy
(equal to one tenth of a cent or one thousandth of a dollar).
NEPA: National Environmental Policy Act of 1969, as amended.
Network: Network integration.
OATT: Open Access Transmission Tariff, including all schedules or
attachments thereto, as amended from time to time and approved by FERC.
Order RA 6120.2: DOE Order outlining Power Marketing Administration
financial reporting and rate-making procedures.
P2P: Point-to-point.
Power: Capacity and energy.
Provisional Formula Rates: Formula rates that are confirmed,
approved, and placed into effect on an interim basis by the Secretary
or his/her designee.

Effective Date

The provisional formula rates under Rate Schedules DSW-FT1, DSW-
NFT1, DSW-NTS1, PD-F8, and PD-FCT8 will take effect the first day of
the full billing period beginning on or after January 1, 2024, and will
remain in effect through September 30, 2028, pending approval by FERC
on a final basis or until superseded.

Public Notice and Comment

WAPA's Desert Southwest Region (DSW) followed the Procedures for
Public Participation in Power and Transmission Rate Adjustments and
Extensions, 10 CFR part 903, in developing these formula rates. DSW
took the following steps to involve interested parties in the rate
process:
1. On June 30, 2023, a Federal Register notice (88 FR 42355)
(Proposed FRN) announced the proposed formula rates and initiated a 90-
day public consultation and comment period.
2. On June 30, 2023, DSW notified customers and interested parties
of the proposed formula rates and provided a copy of the Proposed FRN
by email.
3. On August 7, 2023, DSW held a public information forum via video
conference and in person at DSW's Phoenix, Arizona office. DSW
representatives explained the proposed formula rates and answered
questions.
4. On August 29, 2023, DSW held a public comment forum via video
conference and in person at DSW's Phoenix, Arizona office to provide an
opportunity for customers and other interested parties to comment for
the record.
5. DSW established a public website to post information about the
rate process. The website is located at <a href="http://www.wapa.gov/about-wapa/regions/dsw/rates/otr">www.wapa.gov/about-wapa/regions/dsw/rates/otr</a>.
6. During the 90-day consultation and comment period, which ended
on September 28, 2023, DSW received comments from eleven entities.
DSW's responses to questions received prior to the public comment forum
were posted to the public website.
7. The comments received during or after the public comment forum
are addressed in the ``Comments'' section. All comments have been
considered in the preparation of this Rate Order.
Oral comments were received from the following organizations:

Electrical District No. 4 of Pinal County
Electrical District No. 7 of Maricopa County
Hohokam Irrigation and Drainage District
Maricopa Water District
Salt River Pima-Maricopa Indian Community
Town of Gilbert, Arizona
Town of Wickenburg, Arizona
Wellton-Mohawk Irrigation and Drainage District

Written comments were received from the following organizations:

Calpine Energy Services
Central Arizona Water Conservation District
Griffith Energy

Discussion

The rates for transmission service on Central Arizona Project
(CAP), Pacific Northwest-Pacific Southwest Intertie Project (Intertie),
and Parker-Davis Project (PDP), and the facilities use charge for
Electrical District No. 5 to Palo Verde Hub Project (ED5-PVH), have
substantially converged over the last several years. Combining the
rates and facilities use charge for these projects into ``One
Transmission Rate'' (OTR) is expected to provide benefits to DSW's
customers by allowing more efficient scheduling and use of each
project's transmission facilities, eliminating multiple charges (rate
pancaking) among the transmission systems, and providing rate and
financial stability by having a larger revenue requirement with a more
diverse customer base.
Although the transmission service rates and facilities use charge
are combined under the OTR, the projects remain separate for financial
accounting and repayment purposes. The formula rates under the OTR
provide sufficient revenue to recover annual operation, maintenance,
and replacement costs, interest expense, and capital repayment
requirements while ensuring repayment of the projects within the cost
recovery criteria set forth in DOE Order RA 6120.2.
To implement the OTR, DSW's new rate schedules contain formula
rates for firm and nonfirm P2P and Network transmission service. These
new schedules supersede the existing rate schedules for CAP, Intertie,
and PDP transmission service and replace the

[[Page 85614]]

contractual charge for the use of ED5-PVH facilities. DSW also made
changes to the existing formula rates for PDP FES and firm transmission
service of Salt Lake City Area/Integrated Projects (SLCA/IP) power so
they align with the new rate schedule for firm P2P transmission
service.
DSW's formula rates for firm and nonfirm P2P and Network
transmission service under the OTR, along with PDP FES and firm
transmission service of SLCA/IP power, will go into effect the first
day of the first full billing period beginning on or after January 1,
2024, and remain in effect through September 30, 2028, or until DSW
changes the formula rates through another public rate process pursuant
to 10 CFR part 903, whichever occurs first.

Firm Point-to-Point Transmission Service

DSW's new rate schedule, DSW-FT1, applies to long-term and short-
term firm P2P transmission service on CAP, Intertie, PDP, and ED5-PVH.
This rate schedule contains formulas to calculate the rates for firm
P2P transmission service. For long-term transmission service (one year
or longer), the annual rate for each kW-year equals the combined ATRR
of each project, which is the amount of revenue that each project needs
to cover the costs associated with its transmission system, divided by
the combined anticipated long-term capacity reservations for each
project, rounded to the nearest 12-cent increment. For short-term
transmission service (up to one year), the maximum rate for each kW is
equal to the annual long-term rate divided by the applicable period of
time (i.e., monthly, weekly, daily and hourly) and rounded to up to
five decimal places.
These long-term and short-term rates will be calculated annually
using updated financial and capacity reservation information, as
applicable. This new rate schedule supersedes Rate Schedules CAP-FT3,
INT-FT5, and PD-FT7.

Nonfirm Point-to-Point Transmission Service

DSW's new rate schedule, DSW-NFT1, applies to nonfirm P2P
transmission service on CAP, Intertie, PDP, and ED5-PVH. This rate
schedule contains a formula to calculate the rate for nonfirm P2P
transmission service. The nonfirm rate is calculated by dividing the
annual long-term rate for firm P2P transmission service by 8,760 hours
and rounding to five decimal places. The nonfirm rate will be
calculated annually using the long-term rate for firm P2P transmission
service. This new rate schedule supersedes Rate Schedules CAP-NFT3,
INT-NFT4, and PD-NFT7.

Network Transmission Service

DSW's new rate schedule, DSW-NTS1, applies to Network transmission
service on CAP, Intertie, PDP, and ED5-PVH. This rate schedule contains
a formula to calculate the monthly charge for Network transmission
service. The monthly charge is determined by multiplying the customer's
load ratio share, the ratio of the customer's Network load to the
transmission provider's total load, times one twelfth (\1/12\) of the
combined ATRR of each project. The combined ATRR will be calculated
annually using updated financial information. This new rate schedule
supersedes Rate Schedules CAP-NITS3, INT-NTS4, and PD-NTS4.

PDP Firm Electric Service

DSW revised Rate Schedule PD-F7 so the transmission charge aligns
with the new rate schedule, DSW-FT1, for long-term and short-term firm
P2P transmission service on CAP, Intertie, PDP, and ED5-PVH. No changes
occurred to the energy or capacity charges. DSW also made other minor
changes to Rate Schedule PD-F7. Specifically, the rate schedule was
modified to indicate that recently approved Rate Schedule DSW-UU1 \3\
applies to unauthorized transmission overruns. In addition, the section
on transformer losses was deleted because it only pertained to
deliveries made with meters located at distribution voltage, a
situation that no longer exists for DSW. The revised rate schedule, PD-
F8, supersedes PD-F7.
---------------------------------------------------------------------------

\3\ Order Confirming and Approving Rate Schedules on a Final
Basis, FERC Docket No. EF21-6-000.
---------------------------------------------------------------------------

PDP Transmission Service of SLCA/IP Power

DSW revised Rate Schedule PD-FCT7 to align with the new rate
schedule, DSW-FT1, for long-term and short-term firm P2P transmission
service on CAP, Intertie, PDP, and ED5-PVH. DSW also made minor changes
to sections of Rate Schedule PD-FCT7 addressing adjustment for losses
and overrun of capacity. Specifically, the new rate schedule reflects
that recently approved Rate Schedules DSW-TL1 and DSW-UU1 \4\ apply to
transmission losses service and unreserved use, respectively. The
revised rate schedule, PD-FCT8, supersedes PD-FCT7.
---------------------------------------------------------------------------

\4\ Ibid.
---------------------------------------------------------------------------

Table of Rate Schedules

The table below provides a crosswalk from the existing rate
schedules to the new rate schedules.

Rate Schedules
------------------------------------------------------------------------
Existing New
------------------------------------------------------------------------
CAP-FT3, INT-FT5 & PD-FT7................. DSW-FT1.
CAP-NFT3, INT-NFT4 & PD-NFT7.............. DSW-NFT1.
CAP-NITS3, INT-NTS4 & PD-NTS4............. DSW-NTS1.
PD-F7..................................... PD-F8.
PD-FCT7................................... PD-FCT8.
------------------------------------------------------------------------

Prepayment of Service

Long-term firm P2P and Network transmission service under Rate
Schedules DSW-FT1 and DSW-NTS1 will be paid one month in advance and
credited in a subsequent month. The Intertie and PDP long-term firm P2P
transmission customers currently prepay for service and will experience
no change. As described below, CAP long-term firm P2P and PDP Network
transmission customers and ED5-PVH facilities use customers will start
prepaying for service when the rate schedules become effective.
The monthly prepayment for long-term firm P2P transmission service
will be based on the capacity reserved. The monthly prepayment for
Network transmission service will be based on the most recent bill.
Since transmission customers that currently do not prepay for service
will have two payments each month during the first two months, one for
service in arrears and one for prepayment, customers may choose an
optional four-month transitional period to phase in prepayments. With a
transitional period, the two additional payments that are necessary
during the first two months will be evenly distributed over the first
four months to help mitigate the potential financial burden on
customers.

Comments

DSW received oral and/or written comments during the public
consultation and comment period from eleven entities. The comments
expressed have been paraphrased and/or combined, where appropriate,
without compromising the meaning of the comments.
A. Comment: A commenter requested the OTR be flexible to
accommodate the inclusion of future projects which may be funded by
WAPA's Transmission Infrastructure Program or non-DSW transmission
facilities.
Response: WAPA believes the OTR can accommodate such projects if
they are an element of CAP, Intertie, PDP, or ED5-PVH. Transmission
facilities separate from those transmission

[[Page 85615]]

systems would require a public process to modify the formula rates for
the OTR to accommodate them.
B. Comment: Several commenters expressed support for the OTR.
Response: WAPA appreciates the comments and support for
establishing a single rate for DSW transmission systems.
C. Comment: A commenter inquired about the availability of
additional markets to customers under the proposed OTR.
Response: The availability of additional markets will vary by
customer and existing transmission system usage. However, subject to
the OATT, customers would have the ability to redirect service on the
entire DSW transmission system regardless of project and without being
subject to additional charges and to reserve new transmission service
on the entire DSW transmission system in one transaction.
D. Comment: A commenter believes the proposed OTR employs an
arbitrary rate setting methodology adversely impacting Intertie-only
customers by unfairly subsidizing other DSW transmission projects
without providing any additional benefits.
Response: Since April 2022, DSW has held several customer workgroup
meetings to review and discuss the OTR rate methodology to ensure it is
sound and provides the best value for the customers. As part of this
action, the Administrator determined the new rate schedules are the
lowest possible consistent with sound business principles. Customers
across DSW will receive multiple benefits from the OTR both in the
short and long term. Customers taking transmission through the OTR will
receive more efficient scheduling and use of each project's
transmission facilities. The OTR will also eliminate multiple charges
(rate pancaking) among the transmission systems and provide rate and
financial stability by having a larger revenue requirement and more
diverse customer base.
E. Comment: A commenter requested that Intertie-only customers be
grandfathered under the existing Intertie rate structure to prevent
subsidization of other DSW transmission projects.
Response: To realize the benefits of the OTR, including the
elimination of rate pancaking and enhanced rate and financial
stability, the transmission service rates and facilities use charge for
all projects must be combined under one methodology. Preserving the
rate structure for any particular project, or grandfathering particular
customers, would undermine and be contrary to the purpose of the OTR.
Even though the transmission service rates and facilities use charge
would be combined under the OTR, the projects will remain separate for
financial accounting and repayment purposes.

Certification of Rates

I have certified the Provisional Formula Rates under Rate Schedules
DSW-FT1, DSW-NFT1, DSW-NTS1, PD-F8, and PD-FCT8 for DSW are the lowest
possible rates, consistent with sound business principles. The
Provisional Formula Rates were developed following administrative
policies and applicable laws.

Availability of Information

Information used by DSW to develop the Provisional Formula Rates is
available for inspection and copying at the Desert Southwest Regional
Office, 615 South 43rd Avenue, Phoenix, Arizona. These documents are
also available on WAPA's website at <a href="http://www.wapa.gov/about-wapa/regions/dsw/rates/otr">www.wapa.gov/about-wapa/regions/dsw/rates/otr</a>.

Ratemaking Procedure Requirements

Environmental Compliance

WAPA has determined this action fits within the following
categorical exclusion listed in appendix B to subpart D of 10 CFR part
1021: B4.3 (Electric power marketing rate changes). Categorically
excluded projects and activities do not require preparation of either
an environmental impact statement or an environmental assessment.\5\ A
copy of the categorical exclusion determination is available on WAPA's
website at <a href="http://www.wapa.gov/about-wapa/regions/dsw/environment">www.wapa.gov/about-wapa/regions/dsw/environment</a>.
---------------------------------------------------------------------------

\5\ The determination was done in compliance with NEPA (42
U.S.C. 4321-4347); the Council on Environmental Quality Regulations
for implementing NEPA (40 CFR parts 1500-1508); and DOE NEPA
Implementing Procedures and Guidelines (10 CFR part 1021).
---------------------------------------------------------------------------

Determination Under Executive Order 12866

WAPA has an exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.

Submission to the Federal Energy Regulatory Commission

The Provisional Formula Rates herein confirmed, approved, and
placed into effect on an interim basis, together with supporting
documents, will be submitted to FERC for confirmation and final
approval.

Order

In view of the above and under the authority delegated to me, I
hereby confirm, approve, and place into effect, on an interim basis,
Rate Order No. WAPA-209. The formula rates will remain in effect on an
interim basis until: (1) FERC confirms and approves them on a final
basis; (2) subsequent formula rates are confirmed and approved; or (3)
such formula rates are superseded.

Signing Authority

This document of the Department of Energy was signed on December 1,
2023, by Tracey A. LeBeau, Administrator, Western Area Power
Administration, pursuant to delegated authority from the Secretary of
Energy. That document, with the original signature and date, is
maintained by DOE. For administrative purposes only, and in compliance
with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.

Signed in Washington, DC, on December 5, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

Rate Schedule DSW-FT1 Schedule 7 to OATT (Supersedes Rate Schedules
CAP-FT3, INT-FT5 and PD-FT7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Central Arizona Project, Electrical District No. 5 to Palo Verde Hub
Project, Pacific Northwest-Pacific Southwest Intertie Project, Parker-
Davis Project

Long-Term and Short-Term Firm, Point-to-Point Transmission Service

(Approved Under Rate Order No. WAPA-209)

Effective

The first day of the first full billing period beginning on or
after January 1, 2024, and extending through September 30, 2028, or
until superseded by another rate schedule, whichever occurs earlier.

Available

In the area served by the Central Arizona Project (CAP), Electrical
District No. 5 to Palo Verde Hub Project (ED5-PVH), Pacific Northwest-
Pacific

[[Page 85616]]

Southwest Intertie Project (Intertie), and Parker-Davis Project (PDP).

Applicable

This rate schedule applies to long-term and short-term firm point-
to-point transmission service where capacity and energy are supplied at
points of receipt on the CAP, ED5-PVH, Intertie, and PDP, and
transmitted and delivered, less losses, to points of delivery on the
CAP, ED5-PVH, Intertie, and PDP.

Character and Conditions of Service

Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by service agreement
or non-OATT agreement.

Long-Term Rate

For transmission service one year or longer, the annual rate for
each kilowatt per year (kW-year) equals the combined annual
transmission revenue requirements for CAP, ED5-PVH, Intertie, and PDP
divided by the anticipated long-term capacity reservations for CAP,
ED5-PVH, Intertie, and PDP, rounded to the nearest 12-cent increment.
The annual long-term rate for transmission service is payable monthly;
the rate for each kilowatt per month (kW-month) equals the annual rate
per kW-year divided by 12.
The long-term rate will be calculated annually based on the above
formula with updated financial and capacity reservation information, as
applicable. Discounts may be available in accordance with WAPA's OATT.

Short-Term Rates

For transmission service up to one year, the maximum rate for each
kilowatt is the following:

------------------------------------------------------------------------

------------------------------------------------------------------------
Monthly........................ Annual long-term rate divided by 12
months and rounded two decimal places.
Weekly......................... Annual long-term rate divided by 52
weeks and rounded two decimal places.
Daily.......................... Annual long-term rate divided by 365
days and rounded two decimal places.
Hourly......................... Annual long-term rate divided by 8,760
hours and rounded five decimal places.
------------------------------------------------------------------------

Discounts may be available in accordance with WAPA's OATT.

Billing

Billing for firm point-to-point transmission service will occur
monthly by applying the applicable rate under this schedule to the
capacity reserved. There will be a single charge (no rate pancaking)
for long-term or short-term firm transmission service over a continuous
path across multiple projects. Payment for long-term point-to-point
transmission service will be required one month in advance of said
service.

Adjustment for Reactive Power

There shall be no entitlement to the transfer of reactive kilovolt-
amperes at delivery points, except when such transfers may be mutually
agreed upon by the customer and WAPA or their authorized
representatives.

Adjustment for Losses

Capacity and energy losses incurred in connection with the
transmission and delivery of capacity and energy shall be assessed in
accordance with the rate schedule for transmission losses service in
effect.

Unauthorized Overruns

WAPA will assess charges for unreserved use of transmission service
in accordance with the rate schedule for unreserved use penalties in
effect.

Rate Schedule DSW-NFT1, Schedule 8 to OATT (Supersedes Rate Schedules
CAP-NFT3, INT-NFT4 and PD-NFT7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Central Arizona Project, Electrical District No. 5 to Palo Verde Hub
Project, Pacific Northwest-Pacific Southwest Intertie Project, Parker-
Davis Project

Nonfirm Transmission Service

(Approved Under Rate Order No. WAPA-209)

Effective

The first day of the first full billing period beginning on or
after January 1, 2024, and extending through September 30, 2028, or
until superseded by another rate schedule, whichever occurs earlier.

Available

In the area served by the Central Arizona Project (CAP), Electrical
District No. 5 to Palo Verde Hub Project (ED5-PVH), Pacific Northwest-
Pacific Southwest Intertie Project (Intertie), and Parker-Davis Project
(PDP).

Applicable

This rate schedule applies to nonfirm transmission service where
capacity and energy are supplied at points of receipt on the CAP, ED5-
PVH, Intertie, and PDP, and transmitted and delivered, less losses, to
points of delivery on the CAP, ED5-PVH, Intertie, and PDP.

Character and Conditions of Service

Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by the capacity
reservation.

Rate

For nonfirm transmission service, the maximum hourly rate for each
kilowatt equals the annual long-term rate for firm point-to-point
transmission service divided by 8,760 hours and rounded to five decimal
places. The hourly rate will be calculated annually using updated
information, as applicable. Discounts may be available in accordance
with WAPA's OATT.

Billing

Billing for nonfirm transmission service will occur monthly by
applying the rate under this rate schedule to the amount of capacity
reserved. There will be a single charge (no rate pancaking) for nonfirm
transmission service over a continuous path across multiple projects.

Adjustment for Reactive Power

Adjustment for Losses

[[Page 85617]]

Rate Schedule DSW-NTS1

Attachment H to OATT (Supersedes Rate Schedules CAP-NITS3, INT-NTS4 and
PD-NTS4)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Central Arizona Project, Electrical District No. 5 to Palo Verde Hub
Project, Pacific Northwest-Pacific Southwest Intertie Project, Parker-
Davis Project

Network Integration Transmission Service

(Approved Under Rate Order No. WAPA-209)

Effective

The first day of the first full billing period beginning on or
after January 1, 2024, and extending through September 30, 2028, or
until superseded by another rate schedule, whichever occurs earlier.

Available

Applicable

This rate schedule applies to network integration (Network)
transmission service where capacity and energy are supplied from
designated network resources on the CAP, ED5-PVH, Intertie, and PDP,
and transmitted and delivered to designated network loads on the CAP,
ED5-PVH, Intertie, and PDP.

Charge

The monthly charge for Network transmission service equals the
customer's load ratio share, the ratio of the customer's network load
to the transmission provider's total load, times one twelfth (\1/12\)
of the combined annual transmission revenue requirements for CAP, ED5-
PVH, Intertie, and PDP.
The combined annual transmission revenue requirement for CAP, ED5-
PVH, Intertie, and PDP will be calculated annually with updated
financial information.

Billing

Billing for network transmission service will occur monthly. There
will be a single charge (no rate pancaking) for transmission service
over multiple projects. Payment for network transmission service will
be required one month in advance of said service.

Adjustment for Losses

Rate Schedule PD-F8 (Supersedes Rate Schedule PD-F7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Parker-Davis Project

Firm Electric Service

(Approved Under Rate Order No. WAPA-209)

Effective

The first day of the first full billing period beginning on or
after January 1, 2024, and extending through September 30, 2028, or
until superseded by another rate schedule, whichever occurs earlier.

Available

In the area served by the Parker-Davis Project (PDP).

Applicable

The rate schedule applies to firm electric service supplied through
one meter at one point of delivery, unless otherwise provided by
contract.

Character and Conditions of Service

Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by contract.

Charges

Energy
Each firm electric service customer shall be billed a monthly
energy charge. This charge equals the customer's monthly contractual
energy reservation multiplied by the Energy Rate and rounded to the
penny. The Energy Rate equals 50 percent of the annual generation
revenue requirement divided by the estimated total generation delivery
commitments, rounded to two decimal places.
Capacity
Each firm electric service customer shall be billed a monthly
capacity charge. This charge equals the customer's monthly contractual
capacity reservation multiplied by the Capacity Rate and rounded to the
penny. The Capacity Rate equals 50 percent of the annual generation
revenue requirement divided by the estimated total generation delivery
commitments, rounded to two decimal places.
Transmission
Each firm electric service customer shall be billed monthly a
transmission charge. This charge equals the customer's contractual
reservation multiplied by the long-term rate calculated in accordance
with the rate schedule for firm point-to-point transmission service in
effect, rounded to the penny.
Lower Basin Development Fund Contribution
The contribution charge equals 4.5 mills/kWh for each kWh measured
or scheduled to an Arizona customer and 2.5 mills/kWh for each kWh
measured or scheduled to a California or Nevada customer.

Excess Energy

When excess energy is available, offered, and delivered to firm
electric service customers, such excess energy shall be charged using
the Energy Rate.

Unauthorized Overruns/Unreserved Use

Unauthorized overruns of energy and/or capacity shall be charged
ten times the applicable Energy and/or Capacity Rate. Unreserved use of
transmission service shall be charged in accordance with the rate
schedule for unreserved use penalties in effect.

Power Factor

The firm electric service customer normally will be required to
maintain a power factor at all points of measurement between 95-percent
lagging and 95-percent leading.

Rate Schedule PD-FCT8 (Supersedes Rate Schedule PD-FCT7)

United States Department of Energy Western Area Power Administration

Desert Southwest Region

Parker-Davis Project

Firm Transmission Service of Salt Lake City Area/Integrated Project
Power

(Approved Under Rate Order No. WAPA-209)

Effective

The first day of the first full billing period beginning on or
after January 1, 2024, and extending through September 30, 2028, or
until superseded by another rate schedule, whichever occurs earlier.

Available

[[Page 85618]]

Applicable

This rate schedule applies to firm transmission service where Salt
Lake City Area/Integrated Projects (SLCA/IP) capacity and energy are
supplied at points of receipt on the PDP, and transmitted and
delivered, less losses, to points of delivery on the PDP.

Character and Conditions of Service

Alternating current at 60 hertz, three-phase, delivered and metered
at the voltages and points of delivery established by service agreement
or non-OATT agreement.

Rate

For firm transmission service of SLCA/IP power, the annual rate for
each kilowatt per year (kW-year) equals the long-term rate for point-
to-point transmission service on CAP, ED5-PVH, Intertie, and PDP. The
annual long-term rate for transmission service is payable monthly; the
rate for each kilowatt per month (kW-month) equals the annual rate per
kW-year divided by 12.

Billing

Billing for firm transmission service of SLCA/IP power will occur
monthly by applying the rate under this rate schedule to the amount of
capacity reserved. There will be a single charge (no rate pancaking)
for firm transmission service over a continuous path across multiple
projects. Payment for transmission service will be required one month
in advance of said service.

Adjustments for Reactive Power

Adjustments for Losses

Unreserved Use

WAPA will assess charges for unreserved use of transmission service
in accordance with the rate schedule for unreserved use penalties in
effect.

[FR Doc. 2023-26963 Filed 12-7-23; 8:45 am]
BILLING CODE 6450-01-P

</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>

View on FederalRegister.gov →Plain-text source

Indexed from Federal Register on December 8, 2023.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.